iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen”
or the “Company”), an online global marketplace that
connects scientists in need of biospecimens for medical research
with a network of healthcare specimen providers, today reported its
financial and operating results for the three- and nine-month
period ended September 30, 2022.
“During the third quarter of 2022, iSpecimen
achieved record non-COVID revenue of $2.26 million, or 88% of total
revenue. Also, representing the fifth quarter in a row of
increasing non-COVID revenue for the Company. This exemplifies the
durability of our core business model and the investments we’ve
made to date,” said Tracy Curley, Interim CEO and CFO. “We remain
committed to enhancing the iSpecimen Marketplace platform. We
recently launched the Open Feasibilities Dashboard on iSpecimen
Marketplace, which allows supplier partners to review potential
future research projects at any time and initiate their interest by
submitting a proposal. Through these recent initiatives, we are
aiming to provide a best in-class platform for researchers and
suppliers to connect seamlessly and to improve the biospecimen
procurement process. To that end, we have several additional
internally developed software projects in the pipeline to support
our efforts.”
“Having recently stepped into the role of
interim CEO, I am excited and encouraged about both our near- and
long-term prospects. We are actively pursuing several new
multimillion dollar business initiatives. At the same time, we are
reviewing the Company’s structure, processes and resources to
evaluate and identify areas for improvement. We are laser-focused
on creating a runway for growth and scale. We look forward to
keeping the investment community apprised of our developments as we
achieve these milestones,” concluded Ms. Curley.
Q3 2022 Financial & Operational
Highlights
- Revenue mix in Q3 2022 was
comprised of approximately $2.26 million in general specimen
revenue and approximately $0.32 million in COVID-related revenue,
or 88% and 12% of revenue, respectively, compared to approximately
$1.80 million in general specimen revenue and $0.92 million in
COVID-related revenue, or 66% and 34% of revenue, respectively the
same period a year ago. This resulted in a 26% increase in general
specimen revenue for Q3 2022 compared to the same prior year’s
period, marking a record all-time high for the Company for
non-COVID-19 revenue.
- Unique supplier organizations under
agreement were 217 as of September 30, 2022, up from 214 as of June
30, 2022.
- Unique customer organizations who
have purchased from iSpecimen totaled 480 as of September 30, 2022,
an increase of 21% over Q3 2021.
- iSpecimen Marketplace had nearly
6,500 registered research and supplier users as of September 30,
2022, up 32%over Q3 2021.
Recent Corporate Updates
- Launched Marketplace onsite program
to optimize biospecimen procurement process for sample providers.
With this extra layer of support, iSpecimen and its partners will
be able to expand and streamline access to biospecimens for
research.
- Appointed Tracy Curley as Interim
CEO. In addition, Ms. Curley remains CFO and Treasurer.
Financial Results for the Third Quarter
of 2022
Revenue for the third quarter of 2022 was
approximately $2.6 million, compared to approximately $2.7 million
for the third quarter of 2021. The decreases in revenue for the
three-month period in 2022 were primarily attributable to the
continuing decline in sales of COVID-19 specimens, when compared to
the same period in the prior year.
Cost of revenue was approximately $1.2 million
for the third quarter of 2022, compared to approximately $0.9
million for the third quarter of 2021. The third quarter 2022
increase was attributable to a 45% increase in the average cost per
specimen impacted by the specimen mix, offset somewhat by an 11%
decrease in the number of specimens accessioned for the current
period compared to the same prior year's period.
General and administrative expenses were
approximately $2.2 million for the third quarter of 2022, compared
to approximately $1.6 million for the third quarter of 2021. The
increases were primarily attributable to an increase in costs
related to compensation, severance costs, stock compensation,
directors’ and officers’ insurance and operating and maintenance
expenses.
Net loss was approximately $3.1 million, or
$(0.35) per share, for the third quarter 2022, compared to net loss
of approximately $1.6 million, or $(0.22) per share, for the same
period in 2021.
Cash was approximately $20.7 million as of
September 30, 2022, compared to approximately $27.7 million as of
December 31, 2021.
Conference Call and Webcast
Information
The Company will host a conference call and
audio webcast today, November 8, 2022 at 8:30 a.m. Eastern Time
featuring remarks by Tracy Curley, Interim CEO and CFO.
| Event: |
iSpecimen Third Quarter 2022
Results Conference Call |
| |
|
| Date: |
Tuesday, November 8, 2022 |
| |
|
| Time: |
8:30 a.m. Eastern Time |
| |
|
| Live
Call: |
+1-844-826-3033 (U.S. Toll
Free) or +1-412-317-5185 (International) |
| |
|
| Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1577696&tp_key=a7de1c6dca |
For interested individuals unable to join the
conference call, a replay will be available through November 22,
2022, at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671
(International). Participants must use the following code to access
the replay of the call: 10172498. An archived version of the
webcast will also be available on iSpecimen’s Investor Relations
site: https://ispecimen.irpass.com/.
About iSpecimeniSpecimen
(Nasdaq: ISPC) offers an online marketplace for human biospecimens,
connecting scientists in commercial and non-profit organizations
with healthcare providers that have access to patients and
specimens needed for medical discovery. Proprietary, cloud-based
technology enables scientists to intuitively search for specimens
and patients across a federated partner network of hospitals, labs,
biobanks, blood centers and other healthcare organizations. For
more information, please visit www.ispecimen.com.
Forward Looking StatementsThis
press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements are characterized by future or
conditional verbs such as "may," "will," "expect," "intend,"
"anticipate," believe," "estimate" and "continue" or similar words.
You should read statements that contain these words carefully
because they discuss future expectations and plans, which contain
projections of future results of operations or financial condition
or state other forward-looking information.
Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release, including but not limited to the
risks factors contained in the Company's filings with the
Securities and Exchange Commission, which are available for review
at www.sec.gov. Forward-looking statements speak only as of
the date they are made. New risks and uncertainties arise over
time, and it is not possible for the Company to predict those
events or how they may affect the Company. If a change to the
events and circumstances reflected in the Company's forward-looking
statements occurs, the Company's business, financial condition and
operating results may vary materially from those expressed in the
Company's forward-looking statements.
Readers are cautioned not to put undue reliance
on forward-looking statements, and the Company assumes no
obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise.
For further information, please contact:
Investor ContactKCSA Strategic
CommunicationsAllison SossiSpecimen@kcsa.com
Media ContactsKCSA Strategic
CommunicationsRaquel Cona / Shana MarinoiSpecimen@kcsa.com
iSpecimen Inc.Condensed
Balance Sheets
| |
|
September 30, |
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
20,657,719 |
|
|
$ |
27,738,979 |
|
|
Accounts receivable - unbilled |
|
|
1,311,222 |
|
|
|
1,739,020 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$215,845 and $269,170 at September 30, 2022 and
December 31, 2021, respectively |
|
|
1,784,805 |
|
|
|
3,002,442 |
|
|
Prepaid expenses and other current assets |
|
|
341,555 |
|
|
|
327,035 |
|
|
Tax credit receivable, net of current portion |
|
|
140,873 |
|
|
|
140,873 |
|
|
Total current assets |
|
|
24,236,174 |
|
|
|
32,948,349 |
|
|
Property and equipment, net |
|
|
19,194 |
|
|
|
32,781 |
|
|
Internally developed software, net |
|
|
3,434,344 |
|
|
|
2,710,867 |
|
|
Right-of-use asset |
|
|
222,626 |
|
|
|
— |
|
|
Security deposits |
|
|
27,601 |
|
|
|
27,601 |
|
|
Total assets |
|
$ |
27,939,939 |
|
|
$ |
35,719,598 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
967,735 |
|
|
$ |
832,678 |
|
|
Accrued expenses |
|
|
885,563 |
|
|
|
1,009,803 |
|
|
Accrued interest |
|
|
7,778 |
|
|
|
8,167 |
|
|
Operating lease current obligation |
|
|
155,595 |
|
|
|
— |
|
|
Term loan, net of debt discount -current |
|
|
816,667 |
|
|
|
— |
|
|
Deferred revenue |
|
|
— |
|
|
|
654,746 |
|
|
Total current liabilities |
|
|
2,833,338 |
|
|
|
2,505,394 |
|
| Operating lease long-term
obligation |
|
|
67,985 |
|
|
|
— |
|
| Term loan |
|
|
2,615,156 |
|
|
|
3,422,616 |
|
|
Total liabilities |
|
|
5,516,479 |
|
|
|
5,928,010 |
|
|
|
|
|
|
|
|
|
| Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 200,000,000 shares authorized,
8,918,571 issued, and 8,887,571 outstanding at September
30, 2022 and 8,764,479 issued and 8,733,479 outstanding at
December 31, 2021 |
|
|
888 |
|
|
|
873 |
|
|
Additional paid-in capital |
|
|
68,528,387 |
|
|
|
67,810,289 |
|
|
Treasury stock, 31,000 shares at September 30, 2022 and
December 31, 2021, at cost |
|
|
(172 |
) |
|
|
(172 |
) |
|
Accumulated deficit |
|
|
(46,105,643 |
) |
|
|
(38,019,402 |
) |
|
Total stockholders’ equity |
|
|
22,423,460 |
|
|
|
29,791,588 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
27,939,939 |
|
|
$ |
35,719,598 |
|
iSpecimen Inc.Condensed Statements of
Operations
| |
|
Nine months ended September 30, |
|
Three months ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenue |
|
$ |
7,440,760 |
|
|
$ |
8,586,217 |
|
|
$ |
2,583,412 |
|
|
$ |
2,718,534 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
3,347,392 |
|
|
|
4,026,680 |
|
|
|
1,181,562 |
|
|
|
913,833 |
|
| Technology |
|
|
1,915,877 |
|
|
|
1,315,331 |
|
|
|
752,704 |
|
|
|
543,581 |
|
| Sales and marketing |
|
|
2,530,619 |
|
|
|
1,690,085 |
|
|
|
832,625 |
|
|
|
513,107 |
|
| Supply development |
|
|
590,508 |
|
|
|
383,864 |
|
|
|
516,637 |
|
|
|
171,595 |
|
| Fulfillment |
|
|
1,480,425 |
|
|
|
955,516 |
|
|
|
166,057 |
|
|
|
399,145 |
|
| General and
administrative |
|
|
5,620,393 |
|
|
|
4,144,989 |
|
|
|
2,234,886 |
|
|
|
1,636,346 |
|
| Total operating expenses |
|
|
15,485,214 |
|
|
|
12,516,465 |
|
|
|
5,684,471 |
|
|
|
4,177,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
(8,044,454 |
) |
|
|
(3,930,248 |
) |
|
|
(3,101,059 |
) |
|
|
(1,459,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss on extinguishment of
bridge notes and bridge notes, related parties |
|
|
— |
|
|
|
(2,740,425 |
) |
|
|
— |
|
|
|
— |
|
| Interest expense |
|
|
(138,912 |
) |
|
|
(2,062,548 |
) |
|
|
(58,591 |
) |
|
|
(75,922 |
) |
| Change in fair value of
derivative liability on convertible notes |
|
|
— |
|
|
|
(271,000 |
) |
|
|
— |
|
|
|
— |
|
| Loss on extinguishment of
convertible notes and convertible notes, related parties |
|
|
— |
|
|
|
(260,185 |
) |
|
|
— |
|
|
|
— |
|
| Interest income |
|
|
87,347 |
|
|
|
3,878 |
|
|
|
60,812 |
|
|
|
3,659 |
|
| Other expense, net |
|
|
9,778 |
|
|
|
(21,756 |
) |
|
|
3,148 |
|
|
|
(21,687 |
) |
| Change in fair value of
derivative liability on bridge notes and bridge notes, related
parties |
|
|
— |
|
|
|
1,582,700 |
|
|
|
— |
|
|
|
— |
|
| Gain on extinguishment of note
payable |
|
|
— |
|
|
|
788,156 |
|
|
|
— |
|
|
|
— |
|
| Total other income (expense),
net |
|
|
(41,787 |
) |
|
|
(2,981,180 |
) |
|
|
5,369 |
|
|
|
(93,950 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(8,086,241 |
) |
|
$ |
(6,911,428 |
) |
|
$ |
(3,095,690 |
) |
|
$ |
(1,553,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
$ |
(0.92 |
) |
|
$ |
(2.17 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
|
8,822,423 |
|
|
|
3,190,060 |
|
|
|
8,878,888 |
|
|
|
6,960,330 |
|
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